1
Board Presentation dated 29th July 2019
Quarter ended 30th June 2019
BLUE SOCH.Helping millions shape their tomorrow
• Transition to IND AS
• Performance Analysis
• Sales and Collection Analysis
• Asset Analysis
• Liability Analysis
• Management Discussion & Analysis
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BLUE SOCH.Helping millions shape their tomorrow
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SNAPSHOT Quarter ended 30th June 2019
Disb – ₹ 486.9 Cr
CRAR – 21.9%
D/E ratio (Ind AS):4.6
Own book (Ind AS)
Stage 3 – 5.2%
Stage 3 (Net) – 3.1%
Securitization sanctions
Q1 FY 20 -₹ 197 Cr
No of States / UT
currently operating in
– 20
AUM – ₹ 2760 Cr
Live Customers –
715,170
Additional Sanction
₹ 25 Cr.
New Customers
75,725
4
KEY CHANGES CONSIDERED UNDER IND AS
Loans and advances- Ind AS permits derecognition only when the “transfer” qualifies for derecognition as per “standards” . Hence Securitised
portfolio is not derecognised and is treated as “On-book” portfolio with corresponding liability. Assigned Portfolio is
derecognized from the books.
- Processing fee Income collected on advances and transaction costs on the sourcing amortized over the asset life and
considered for the purpose of determining effective interest rate.
- Interest income on Stage 3 assets (equated to erstwhile NPA) recognized only on receipt basis in the “absence of
certainty” regarding its ultimate collection. (₹ 17.17 Crores of “unrealized interest” not recognized in the books).
Securitization- No de-recognition of portfolio of transferred assets, as risks and rewards cannot be considered as fully transferred,.
Liability created in books for the consideration received from the investor which would get reduced as and when investor
pay-outs are made to SPV.
- Income is recognized on accrual basis on the securitized asset retained in books and a corresponding interest
expense is recognized for investor liability
- ECL provision is recognized on the securitized asset retained in books
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Assignment Transactions :
- Gain on Assignment (DA) transaction recognized upfront, net of the cost that would be incurred on
collection of the assigned portfolio. The “Loss Estimated” by Rating Agency at the beginning of the
transaction is included in ECL provision (one time provision) and would be reversed on the final maturity of
the DA .
- Service Liability / Service asset is recognized upfront on the assigned assets to reflect the fair value of
amounts payable/ receivable under the service obligation on the assigned asset
Provision on Financial Assets:
Provision is based on detailed Expected Credit Loss (ECL) model as prescribed in Ind AS 109 - provision
determined is significantly higher than the RBI mandated norm, especially for S1 and S2 asset categories (equated to
erstwhile Standard Assets)
Amortization of Incomes/Expenses and Interest Accounting:
- Processing Fee collected on advances and transaction costs on the same are amortized over the asset life for the
determining effective interest rate.
- Interest on advances (inclusive of processing charges) is recognized in P&L using Effective Interest Rate method
KEY CHANGES CONSIDERED IND AS … Contd.
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6
Borrowings:
- Transaction costs directly relating to borrowing is amortized over the tenure of the borrowing .
- Comprises of Loan Processing fees on all Bank borrowings, arranger fee, cost of securitization etc.
Disclosure changes :
- Other Comprehensive Income (OCI)– The provisions of IND AS requires the fair value changes of
equity instruments and re-measurement changes on post employment obligations to be routed
through OCI head which is disclosed as a separate category in the statement of Profit &Loss. The
total comprehensive income for the year is inclusive of both Profit and Other comprehensive income
- Transaction costs - Transaction costs directly relating to loan has been amortized over the period
of the loan under Effective Interest rate method. Accordingly these costs have been netted off
against interest income and not disclosed as a separate expenditure under Other Expenses in the
Statement of Profit & Loss
- Securitization – Interest Expense on Investor liability arising from PTC Transaction is disclosed as
a part of Finance cost (earlier netted off against securitization income)
KEY CHANGES CONSIDERED IND AS … Contd.
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7
ECL MATRIX (HYP LOANS) – FY 18 and FY 19S1 S2 S3
0 days 1-30 days 31-60 days 61-90 days >90 days
FY 18
AUM 1 401.43 124.52 62.54 46.33 89.85
EAD 702.93 72.04 38.72 30.22 89.85
PD 2.94% 16.81% 26.68% 35.06% 76.69%
LGD 52.36% 52.36% 52.36% 52.36% 52.36%
Provision 10.82 6.34 5.41 5.55 36.08
ECL % 0.77% 5.09% 8.65% 11.97% 40.15%
FY 19
AUM 1 795.2 140.58 82.29 72.75 113.84
EAD 920.26 82.39 50.48 45.66 113.84
PD 2.52% 15.75% 26.94% 38.08% 79.73%
LGD 51.65% 51.65% 51.65% 51.65% 51.65%
Provision 11.99 6.70 7.02 8.98 46.88
ECL % 0.67% 4.77% 8.53% 12.34% 41.18%
Q1 FY20*
AUM 1 781.88 155.52 87.15 78.96 135.59
EAD 924.66 92.04 54.18 49.87 135.59
PD 2.52% 15.75% 26.94% 38.08% 79.73%
LGD 51.65% 51.65% 51.65% 51.65% 51.65%
Provision 12.05 7.49 7.54 9.81 55.84
ECL % 0.68% 4.81% 8.65% 12.42% 41.18%
*The Company intends to utilize the same PD/LGD/ECL, as at the end of the preceding financial year, for the subsequent 3 quarters(Upto Q3 FY 20),
unless there is substantial change in the overall scenario
₹. In Crores
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EXPECTED CREDIT LOSS (ECL)
Particulars Outstanding Provision ECL% EXISTING* %
Total 2574.22 83.39 3.24% 3.00%
S1 and S2 (Std assets) 2090.82 35.03 1.68% 0.40%
S3 (NPA) 113.84 46.88 41.18% 45.28%
Other Loans 369.56 1.48 0.40% 0.40%
As on 30.06.2018
As on 31.03.2019
Particulars Outstanding Provision ECL% EXISTING* %
Total 2573.13 94.39 3.67% 3.55%
S1 and S2 (Std assets) 2103.51 37.21 1.77% 0.40%
S3 (NPA) 135.59 55.84 41.18% 46.50%
Other Loans 334.03 1.34 0.40% 0.40%
As on 30.06.2019
Particulars Outstanding Provision ECL% EXISTING* %
Total 2174.06 74.92 3.45% 2.51%
S1 and S2 (Std assets) 1800.62 32.32 1.79% 0.40%
S3 (NPA) 103.41 41.52 40.15% 38.16%
Other Loans 270.03 1.08 0.40% 0.40%
₹. In Crores
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*Based on the On Book AUM
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₹. In Crores
Transition to
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As on 31.03.2018 2018-19 Q1 FY 2019 Q1 FY 2020
377.48 127.25 31.76 21.50
Expected Credit Loss addition (27.24) 2.49 (1.57) (0.30)
Provision for Direct assignment gain 0.00 (0.49) 0.00 (0.24)
ECL provision on Hypothecation Loan (27.24) 2.98 (1.57) (0.06)
EIR on financial receivables (45.62) (2.89) (1.57) (0.95)
HP management fee impact (66.49) (10.38) (3.86) (0.55)
Processing fee _ Income (1.19) (0.93) (0.11) (0.01)
Insurance
22.06
3.90 0.19 (0.68)
Transaction cost 4.51 2.20 0.28
Securitization 9.31 7.85 1.69 5.05
Assignment 11.08 (6.56) (4.06) 1.94
Direct assignment income- service asset 11.08 (7.53) (4.67) 2.16
Direct assignment expense _collection cost 0.00 0.97 0.60 (0.22)
EIR on Borrowings 1.76 4.40 0.76 (0.35)
Processing Fees Bank 1.41 2.74 0.14 (0.33)
Securitisation Expense 0.36 1.66 0.62 (0.02)
Fair value changes on investments (0.00) 0.37 (0.04) 0.01
Reserve/Profit before tax as per IND AS 326.78 132.89 26.95 26.89
Deferred Tax/(Liability) 17.72 - -
Reserve/Profit before tax as per IND AS 344.49 132.89 26.95 26.89
IND AS IMPACT ON RESERVE/ PBT
Q1 FY 20 Q1 FY 19 Y-o-Y
451.3 448.4 1%
35.6 37.1 -4%
486.9 485.5 0.3%
2605.4 2201.2 18.4%
2572.1 2070.8 24%
144.0 114.1 26%
55.6 39.5 41%
88.4 74.6 18%
44.5 34.2 30%
17.0 13.4 27%
26.9 27.0 -0.4%
13.6 17.5 -22%
Q1 FY19
Return on Avg. AUM
Earnings per Share
Q1 FY20
2.1%
8.3
* Total AUM including off book as on 30th June 19 is ₹ 2 760 crs ( Q-o-Q- 0.6 % up) (Y-o-Y- 17% up) ;** AUM and Avg AUM under IND AS includes PTC portfolio ; does not include DA portfolio
*** In view of the reduction in the tax rate for the Company, Deferred tax earlier recognized @ 34.944%, has been written down to 29.12% & the difference charged off to P&L A/C in Q1 FY20
3.4%
10.7
Y-o-Y Trend - Ind- AS
Financial Statement Metrics
Disbursement :
Hyp Loans
Other Loans
Total Disbursements
AUM at the end of the period *
Average AUM **
Total Interest and Fee Income
Finance Expenses
Net Interest Income(NII)
Operating Expenses
Loan Losses & Provisions
Profit Before Tax
Profit After Tax***
10
Q1 FY 20 Q1 FY 19 Y-o-Y
451.3 448.4 1%
35.6 37.1 -4%
486.9 485.5 0.3%
2100.5 1912.6 10%
2048.5 1959.4 5%
132.7 124.2 7%
41.4 37.3 11%
91.2 86.9 5%
53.1 43.3 22%
16.7 11.8 41%
21.5 31.8 -32%
12.4 20.6 -40%
Y-o-Y Trend- IGAAP
Q1 FY19Q1 FY20
58.2%
2.4%
7.5
49.9%
4.2%
12.5
Total Opex to NII
₹. In Crores₹. In Crores
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Overall AUM Revenue- (Ind AS)
Borrowing CostLoan Losses & Provision (Ind
AS)Stage 3 (Ind AS)
PAT (Ind AS) ROA- (Ind AS)
11
Q4 FY 19 : ₹ 605.7 Cr
Q1 FY 20 : ₹ 486.9 Cr
Q1 FY 19: ₹ 485.5 Cr
Q1 FY 20 :₹ 486.9 Cr
Q4 FY 19 : ₹ 2741 Cr
Q1 FY 20 : ₹ 2760 Cr0.1%
Q1 FY 19 : ₹ 2367 Cr
Q1 FY 20 : ₹ 2760 Cr18%
Q4 FY 19 : ₹ 137.3 Cr
Q1 FY 20 : ₹ 144.0Cr
Q1 FY 19 : ₹ 114.1 Cr
Q1 FY 20 : ₹ 144.0 Cr
5%
26%
Q4 FY 19 : 10.1%
Q1 FY 20 : 10.3%
Q1 FY 19 : 9.3%
Q1 FY 20 : 10.3%
2%
11%
Q4 FY 19 : ₹ 8.8 Cr
Q1 FY 20 : ₹17.0 Cr
Q1 FY 19 : ₹ 13.4Cr
Q1 FY 20 : ₹ 17.0Cr
93%
27%
19%Q4 FY 19 : ₹ 113.8 Cr
Q1 FY 20 : ₹ 135.6 Cr
Q1 FY 19 : ₹ 103.4 Cr
Q1 FY 20 : ₹ 135.6 Cr31%
Q4 FY 19 : ₹ 22.6 Cr
Q1 FY 20 : ₹ 13.6 Cr
40%
Q1 FY 19 : ₹ 17.5 Cr
Q1 FY 20 : ₹ 13.6 Cr
23%
Q4 FY 19 : 3.7%
Q1 FY 20 : 2.1%
(W/o Def. Tax : 2.7%)
Q1 FY 19 : 3.4 %
Q1 FY 20 : 2.1%
(W/o Def. Tax : 2.7%)
43%
(27%)
38%
(21%)
Disbursement
20%
0.3%
ROE- (Ind AS)
Q4 FY 19 : 21 %
Q1 FY 20 : 12%
(W/o Def. Tax : 16.3%)
Q1 FY 19 : 19%
Q1 FY 20 : 12%
(W/o Def. Tax : 16.3%)
43%
(22%)
36%
(14%)
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12
ASSET QUALITY AND PROVISION COVERAGE
17% 22% 35%
45%46%
5.2%
6.2%
4.6%5.4%
6.4%
4.3%4.8%
3.0%3.1%
3.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
FY 2016(5 month)
FY 2017(4 month)
FY 2018(3 month)
FY 2019(3 month)
Q1 FY 20 (3month)
Provision Coverage GNPA NNPA
As Per IGAAPAs on
30.06.2018
As on
31.03.2019
As on
30.06.2019
Own Book Portfolio 1912.6 2084.1 2100.5
GNPA 5.3% 5.4% 6.4%
NNPA 3.4% 3.1% 3.6%
Total Provision* 46.1 59.1* 70.1*
Prov. as % of Loan Book 2.4% 2.8% 3.3%
₹. In Crores
* Includes additional provision of ₹ 5.1Cr made during Q1 FY 20
* * NPA norm
As Per IND ASAs on
30.06.2018
As on
31.03.2019
As on
30.06.2019
Own Book Portfolio2201.2 2608.6 2605.4
Stage 3 4.7% 4.4% 5.2%
Stage 3 (Net) 2.9% 2.6% 3.1%
ECL Provision 74.9 83.4 94.4
Prov as % of Loan Book 3.4% 3.2% 3.6%
As Per IGAAP
₹. In Crores
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MAIN FACTORS IMPACTING PROFITABILITY – DELINQUENCIES-( IGAAP)
Particulars For FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 FY 19 Q1 FY 20
Unrealized
Income
reversed
1.7 1.5 1.6 1.0 -0.7 3.4 2.3
Loss on sale
+ Provision
for diminution
in value of
repo. Assets
14.2 3.8 5.2 6.0 5.2 20.2 5.7
S3 write off1.6 0 0 0 7.8 7.8 -
S3 Provision10.3 4.4 4.2 3.7 -6.1 6.2 5.9
Addl S3
Provision4.0 3.5 3.8 2.4 4.4 14.1 5.1
Total 31.8 13.2 14.8 13.1 10.6 51.7 19.0
Avg AUM* 1479.6 1959.4 1982.0 2083.3 2147.2 2042.6 2048.5
% of Credit
cost on Avg
AUM
(annualized)**
2.1% 2.7% 3.0% 2.5% 2.0% 2.5% 3.7%
₹. In Crores
*Average AUM is excluding managed portfolio;
** Credit Cost Excl Additional Prov: FY 18 -1.9%, Q1 FY 19 – 2.0% , Q2 FY 19- 2.2%, Q3 FY 19-2.1%,Q4 FY19-1.2%,FY 19- 1.8 %,Q1 FY20 – 2.7%
Write OffS3 Assets
Provision
Loss on
sale of repo
assets
Income
reversal
Average
Credit
Cost
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14
ZONEWISE DISBURSEMENT (HYP LOANS) – Y- o -Y₹. In Crores
Zone
BRANCH DEALER TOTAL Overall Share
Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20
Count Value Count Value Count Value Count Value Count Value Count Value Growth %
South11 730 64.3 8 860 51.4 49 105 268.1 40 896 255.8 60 835 332.3 49 756 307.3 -8% 74% 68%
West1 457 6.6 1 213 6.3 5 562 27.7 4 725 27.2 7 019 34.3 5 938 33.4 -3% 8% 7%
North673 3.1 404 2.1 10 637 50.2 9 858 53.4 11 310 53.4 10 262 55.5 4% 12% 12%
East201 0.9 295 1.6 5 671 27.4 9 474 53.5 5 872 28.4 9 769 55.1 94% 6% 12%
Overall 14 061 74.9 10 772 61.4 70 975 373.4 64 953 389.9 85 036 448.4 75 725 451.3 1% 100% 100%
14.0%
86.0%
Branch
Dealer
Share of Branch and Dealer of zone-wise
disbursement
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15
ZONEWISE DISBURSEMENT (HYP LOANS) – Q- o -Q
Zone
BRANCH DEALER TOTAL Overall Share
Q1 FY ’20 Q4 FY ’19 Q1 FY ’20 Q4 FY ’19 Q1 FY ’20 Q4 FY ’19 Q1 FY ‘20 Q4 FY’19
Count Value Count Value Count Value Count Value Count Value Count Value Growth%
South 8 860 51.4 9 244 54.1 40 896 255.9 41 031 251.1 49 756 307.3 50 275 305.2 1% 68% 69%
West 1213 6.2 1 085 5.6 4 725 27.2 4 638 26.7 5 938 33.4 5 723 32.3 4% 8% 7%
North 404 2.1 505 2.7 9 858 53.4 9 631 52.4 10 262 55.5 10 136 55.1 1% 12% 12%
East 295 1.7 371 2.0 9 474 53.4 8 841 49.4 9 769 55.1 9 212 51.4 7% 12% 12%
Overall 10 772 61.4 11 205 64.4 64 953 389.9 64 141 379.6 75 725 451.3 75 346 444.0 2% 100% 100%
₹. In Crores
14.0%
86.0%
Branch
Dealer
Share of Branch and Dealer of zone-wise
disbursement
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16
COLLECTION PERFORMANCE MONITORING (HYP)
Bucket-wise Flow Collection Performance
₹. In Crores
₹. In Crores
96.9% 98.0% 98.0% 97.0% 97.3%
3.1% 2.0% 2.0%3.0% 2.7%
Q1 FY '19 Q2 FY '19 Q3 FY '19 Q4 FY '19 Q1 FY '20
Soft Bucket(1-90DPD) Hard bucket Coll(> 90 DPD)
386 416488
453484
Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20
Soft Bucket (1-90) 378 405 441 471 471
Hard Bucket (>90) 8 11 12 17 13
Total 386 416 453 488 484
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
0 1-30 31-60 61-90 NPA Roll Back
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PORTFOLIO TREND – HYPOTHECATION LOANS- IGAAP
₹. In Crores
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
30+ 90+
Month
Own
book
AUM
30+ 90+ 30+% 90+%
01-Jul-18 1 616.8 219.4 101.9 13.6% 6.3%
01-Aug-18 1 688.0 224.8 102.4 13.3% 6.1%
01-Sep-18 1 770.1 256.5 119.4 14.5% 6.7%
01-Oct-18 1 772.5 266.7 118.1 15.0% 6.7%
01-Nov-18 1 858.7 267.6 119.2 14.4% 6.4%
01-Dec-18 1 822.4 271.0 121.8 14.9% 6.7%
01-Jan-19 1 870.6 272.0 122.8 14.5% 6.6%
01-Feb-19 1 935.0 271.4 122.5 14.0% 6.3%
01-Mar-19 1 976.2 274.8 124.9 13.9% 6.3%
01-Apr-19 1 685.9 262.1 113.1 15.5% 6.7%
01-May-19 1 757.8 282.0 131.9 16.0% 7.5%
01-Jun-19 1 724.3 283.0 130.3 16.4% 7.6%
01-Jul-19 1 737.1 284.4 133.8 16.4% 7.7%
On an overall hyp book of ₹ 2426 Cr, 30+ is 12.9% & 90+ is 5.7%
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NPA MOVEMENT – HYP LOAN – Q1 FY 2020- IGAAP ₹. In Crores
Own Book PTC portfolio Total
Portfolio
Total
ProvisionParticulars HP Nos Principal Provision Unrealized Principal Provision
Balance as on 31.03.2019 61 534 113.1 51.2 14.7 0.7 0.1 113.8 51.3
Add: Slipped to NPA during Apr 19 to Jun 19 15 188 34.6 3.1 2.3 1.3 0.1 35.9 3.2
Add: NPA recognised on sold-out portfolio bought back
Add: Prov. Increased due to non payment of NPA - - 4.6 1.1 - - 4.6
Add: Additional Prov. In the quarter - - 5.1 - - 5.1
Sub total 76 722 147.7 64 18.1 2.0 0.2 149.7 64.2
Less: Rolled back from NPA/adjustments between Apr 19 to Jun 195 110 5.3 0.8 0.4 0.1 0.0 5.4 0.8
Repossessed Asset sold during Apr 19 to Jun 19 1 546 6.7 0.7 0.5 0.0 0.0 6.7 0.7
Amount collected from NPA Accounts for Apr 19 to Jun 19 2 0.3 0.2 0.0 0.0 2.0 0.3
Balance as on 30.06.2019 as per RBI & IGAAP 70 066 133.7 62.2 17 1.9 0.2 135.6 62.4
Overall Provision as on 30th Jun 2019 Provision
As per IGAAP based on RBI guidelines 70.1
As per IND AS 94.4
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19
NPA MOVEMENT – HYP LOAN – ACROSS 3 YEARS - IGAAP
₹. In Crores
Quarter Ended AUM NPA % of NPA NPA Inc
Mar-16 919.4 54.0 5.9%
Jun-16 970.7 69.2 7.1% 15.2
Sep-16 1 043.3 66.5 6.4% -2.7
Dec-16* 1 116.1 78.1 7.0% 11.6
Mar-17 1 241.5 74.4 6.0% -3.8
Jun-17 1 356.5 103.5 7.6% 29.2
Sep-17 1 550.1 96.3 6.2% -7.2
Dec-17 1 764.7 95.2 5.4% -1.1
Mar-18 1 940.2 90.1 4.6% -5.1
Jun-18 2 070.5 104.1 5.0% 13.9
Sep-18** 2 195.3 121.4 5.5% 17.3
Dec-18 2 312.1 124.5 5.4% 3.2
Mar-19 2 342.9 116.3 4.9% -8.2
Jun-19 2 396.1 139.4 5.8% 23.1
*Demonetization Quarter
** Floods in Kerala
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HYP PORTFOLIO SPLIT AS ON JUNE 30TH 2019
73%
27%
On Book
Off Book
As Per IGAAP
₹. In Crores
20
93.5%
6.5%
On Book
Off Book
As per IND AS
Transaction TypeNo of
TransactionsAmount
PTC 8 502.8
Direct Assignment 9 154.9
Ind AS IGAAP
Off Book 154.90 657.7
On Book 2241.20 1738.4
Total Portfolio 2396.10 2396.1
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21
MCSL GEOGRAPHIC OVERVIEW – HYP
ZoneActive
ClientsRegular S3 Total
Zone
wise
AUM %
% of
S3
South India 5 27 583 1 659.8 100.6 1 760.4 73.5% 5.7%
Western India 55 686 162.2 19.4 181.6 7.6% 10.7%
North India 82 911 251.4 16.0 267.4 11.1% 6.0%
East India 48 990 183.3 3.4 186.7 7.8% 1.8%
Overall * 7 15 170 2 256.7 139.4 2 396.1 100.0% 5.8%
*Includes securitized/ assigned portfolio; does not
cover accrued interest
₹. In CroresJUN 30 2019
Andaman Islands
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PORTFOLIO ANALYSIS
5.8%
94.2%
NPA Regular
139.4
2 256.7
5.8% 6.7%
94.2% 93.3%
Two Wheeler Three Wheeler & Others
NPA REGULAR
9.42386.7
80.0%
6.9%
3.8% 3.4% 5.8%
0
1
2
3
Above 3
5.9% 5.5%
94.1% 94.5%
Dealer BranchNPA Regular
2 031.2 364.9
Portfolio Analysis
Source - wise Analysis Bucket – wise Analysis
Segment – wise Analysis
₹. In Crores
22
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IND AS
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Sales & Collection
AnalysisLiability
AnalysisAsset
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Management
Discussion & Analysis
23
SOURCES OF BORROWING
₹197 CrSecuritization/ DA done in
Q1 FY 20 (net of MRR)
• Mobilized ₹1823.6 Cr to date
through 23 transactions
• ₹657.7 Cr outstanding as on 30th
Jun 2019.
Quarter on Quarter increase in cost of
borrowing
10.3%Cost of borrowing for Q1
FY 2019-20
₹25 CrAdditional bank sanctions
during the quarter
Total sanctions as on 30 Jun 2019
amounting to ₹ 1850 Cr. with 1 new
NBFC relationships
₹8.1 CrCollections of Public
Deposit
• Public Deposits collected ₹8.1 Cr.,
of which ₹3.2 Cr. Is renewal
Bank funding - 64% of total borrowing as
on 30 Jun 2019
Securitization/ DA sanctions received
in Q1 FY 20 ₹197 Cr
Transition to
IND AS
Performance
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Sales & Collection
AnalysisLiability
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Asset
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0
200
400
600
800
1000
1200
1400
1600
31 Mar 2016 31 Mar 2017 31 Mar 2018 31 Mar 2019 30 Jun 2019
₹ 185.84 Cr
₹ 342.87 Cr
₹ 1228.47 Cr ₹ 1164.50 Cr
₹ 1488.52 Cr
MARKET CAPITALIZATION
149.0 274.9
746.9
904.4
708.0
119.0
143.0
239.0289.9 298.0
0
100
200
300
400
500
600
700
800
900
1000
31 Mar 2016 31 Mar 2017 31 Mar 2018 31 Mar 2019 30 Jun 2019
Movement of Market Price per Share (MPS) vs. Book Value per Share (BPS)
MPS BPS
24
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IND AS
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AnalysisLiability
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BORROWING PROFILE – by Instrument
25
ParticularsQ1 FY ’19 Q4 FY ’19 Q1 FY ’20
Amount Cost* Amount Cost* Amount Cost*
Bank Loan 1277.5 9.3% 1425.9 10.2% 1416.3 10.3%
Sub debt 60.7 11.6% 58.7 11.9% 58.7 11.4%
Public Deposit 75.1 8.4% 61.6 8.6% 60.3 8.3%
Commercial Paper 48.1 8.7% 0.0
Securitization 453.7 9.4% 656.8 9.7% 657.7 10.3%
Others 7.4 11.0% 11.9 13.4% 11.9 11.4%
Total 1922.4 9.3% 2214.8 10.1% 2204.9 10.3%
64.3%
2.7%2.7%
0.0%29.8%
0.5%
Q1 FY ‘20
Bank Loan
Subdebt
Public Deposit
Commercial Paper
Securitization
Others
64.4%
2.6%
2.8%
0.0%
29.7%
0.5%
Q4 FY ‘19
66.5%
3.2%3.9%2.5%
23.6%
0.4%
Q1 FY ‘19
₹. In Crores
* Cost is interest cost only and doesnot include processing fee, brokerage etc.
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IND AS
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BORROWING PROFILE – by Investor Profile
26
ParticularsQ1 FY ’19 Q4 FY ’19 Q1 FY ‘20
Amount Cost Amount Cost Amount Cost
Banks 1721.3 10.2% 1809.4 10.0% 1837.5 9.3%
NBFCs 48.1 10.7% 196.5 10.7% 146.8 11.5%
Mutual Funds 39.9 11.1% 106.8 11.1% 119.8 8.8%
Others 113.1 9.4% 102.1 10.0% 100.9 9.3%
Total 1922.3 9.3% 2214.9 10.1% 2204.9 10.3%
83.3%
6.7%
5.4%
4.6%
Q1 FY ‘20
BANK
Mutual Fund
NBFC
Others
81.7%
8.9%
4.8%
4.6%
Q4 FY ‘19
89.5%
2.5%2.1%
5.9%
Q1 FY ‘19
₹. In Crores
Transition to
IND AS
Performance
Analysis
Sales & Collection
AnalysisLiability
Analysis
Asset
Analysis
Management
Discussion & Analysis
Diversity in Funding
Borrowing Mix
Securitization/ DA
Geographical expansion
• In Q1 FY 20 got fresh sanctions of ₹ 222 crs; one each from NBFC, Pvt. Bank and a PSU bank
• Confidence that the lenders / investors have in the Company is high; seen through the traction on the fresh
proposals that are being discussed with Banks
• Many potentials (existing and new) waiting for clarity on the NBFC/ Economy scenario to lend to the Company
• The borrowing has a healthy mix of Bank (Private & PSU) sanctions, Securitization/Direct assignment, Retail &
corporate subordinated debts and Public Deposits .
• As per the guidance given, In view of adverse market conditions, interest costs of the Company for Q1 FY20
inched up from 10.1% to 10.3%. Going forward the cost is expected to remain stable.
• 1 PTC and 1 DA transactions together valuing ₹ 197 crs (net of MRR) done during Q1 FY20, 23 transactions
so far, 6 closed. Total amount collected ₹ 1823.6 crs .
• Helped substantially in ploughing funds back into the business and growing the loan book ; Many more
transactions are expected to happen in the future as well. Helps check overall pricing and getting funds when
other means dry up.
• Penetration in present states in South and West and in the new and existing areas in North and East helped
growth and hope is for better and improved performance in FY20.
• New Products , new geographies and digitization seen as the way forward for the next few years. Budget for
the next year in line with the same and much more
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Transition to
IND AS
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AnalysisAsset
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& Analysis
Disbursement & Collection
NPA
Arbitration
• After Q1 FY19, growth slowed , first with the Kerala floods in the festive season and then due to various
news flows on NBFC segment & the Apex Court verdict on 5 year 3rd party insurance for 2W buyers ; impacting
sales & financing; Q1 FY20 show the y-o-y volumes are lower by 12%, while disbursements were at the same
level albeit higher ticket size and LTV due to higher cost of vehicles
• Industry saw a decline of 13%, Q1 Non-South disb. share was 32%; South concentration reducing.
Geographical derisking working well.
• Overall collections have been growing and was stable at ₹ 484 Cr in Q1 FY20 v/s ₹ 488 Cr in Q4 FY 19 ( Q4
normally sees much higher collection)
• Company following 3M norm FY 18 has now moved to ECL model for provisioning;
• Q1 normally sees higher flow to the next buckets and also NPA buckets; confident of correcting it in the
future quarters, as done in the past
• Emphasis on reducing NPA going forward, focusing on lower buckets and ensuring less flow to harder
buckets ; Adopted new methods to control NPA figures; albeit at higher costs.
• Qtr end NPA (net of DA) ₹ 136 crs (5.2%) v/s ₹ 113.8 crs (4.4%) at the beginning of the year; PCR was @
46.5% under IGAAP on NPA; Under IND AS overall provision is @ 3.6% of On-book portfolio.
• Strong action on arbitration/ legal front; though currently arbitration has been reduced and emphasis on
direct collection
• Files given to legal firms – 30 739 and Awards passed – 14 507 and cases settled – 8 201
• ₹ 47.5 crs collected directly from about 15 813 nos. of customers and through repossession and sale of
their vehicles; major step to push customers for settlement.
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Transition to
IND AS
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AnalysisLiability
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Staff attrition & Cost Control
Repayment Mode
Overall Profitability
Way Forward
29
• Monthly staff attrition at 2.75 % in Q1 FY ‘20 v/s 3.5 % in Q4 FY 19 – still a large number of Sales Reps
in the form of Marketing Agents & Off-roll employees;
• Dealer incentives rising steadily @ 1.28% for Q1 FY 20; Constant demand for increase in the pay-out on
the back of very low sales at dealer points;
• Collections costs constantly rising with a aim to ensure that NPAs do not rise. Was at 3.8 % in Q1 FY20 .
• Post demonetization 100% repayment for new customers through NACH and significant collections
through NACH – Helps cut delinquencies. Q1 FY 20 collections were about 50.1% of the total collections,
rising M-O-M. Will help bring down costs and delinquencies over a period of time.
• NACH based repayment customers are at 95 % v/s 26 % at end of Mar’17 quarter. The unlinked
mandates which was an area of concern is fast getting eased and linking has become faster.
• Q1 FY20 PAT of ₹ 13.6 crores v/s ₹ 17.5 Q1 FY19; lower on account of overall lower volumes but
increased costs and higher provisioning on account of higher NPA and movement to IND AS
• Hopeful of improvement in the ground situation going forward with festive seasons now coming up and
overall sentiments set to improve.
• In FY 19, the Company benefited from Geographical de-risking & grew its non-south market, helped
survive the Kerala floods; with slowdown in the 2W segment, the emphasis is on growing new product
lines like Used 4 W and Consumer Durables.
• Are bullish of the future and hopeful that the troubled phase of FY 19 is behind us & future will be better.
Starting the year with substantial funds and undrawn limits will help achieve the committed growth and
work towards achieving Rs 3,500 crs growth that was planned at the time of QIP in Nov 17.
Transition to
IND AS
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THANK YOU
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